Gold traders in India stay away due to weak rupee

SummaryGold traders remained on sidelines after a weak rupee limited the downside in prices.

Gold traders in India, the world's biggest consumer of the metal, remained on the sidelines after a weak rupee limited the downside in prices.

* After a 50 percent import duty hike to 6 percent on Jan. 21, the Reserve Bank of India last week recommended putting curbs on imports, along with launching gold-linked products to limit shipments. Wedding and festival season are currently underway in India.

* The actively traded contract gold for April delivery on the Multi Commodity Exchange (MCX) was 0.07 percent lower at 30,793 rupees per 10 grams.

* "Not many deals are happening as the rupee depreciated on opening and gold is holding steady... People are still bearish on prices of gold," said a dealer with a state-run bullion dealing bank in Mumbai, adding "the situation might last for this week if prices don't correct."

* The rupee, which traded weaker, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the overseas market, gold edged up despite a volatile euro on Monday, with thin trade due to the Lunar New Year break exaggerating movements.

* The most-traded silver contract for March on the MCX was 0.02 percent lower at 58,234 rupees per kg.

* The following were the prices of gold and silver in rupees as of 1.11 p.m. local time in the spot market, quoted by HDFC Bank.